Wednesday, November 3, 2010

Hoover City Council approves refinancing $56.4 million in debt

Published: Monday, November 01, 2010, 8:16 PM ??? Updated: Monday, November 01, 2010, 8:19 PM

The Hoover City Council on Monday night approved the city's refinancing $56.4 million in debt.

The City Council in September voted to give approval to begin the process to refinance about two-thirds of its existing $84.4 million of debt, some of which dates to 1993. The bonds went to market Oct. 20.

The city, which had its debt rating upgraded from Aa2 to the second-highest rating of Aa1 by Moody's Investors Service, now has an interest rate of 2.74 percent, officials have said. The refinancing saved the city $3.6 million. The city is not adding new debt or extending the term of its debt.

Councilman Gene Smith applauded city leaders and staff for the city's strong financial position with the debt rating upgrade in the current tough economic times and also the quick sale of the bonds in under an hour.

"I think the city of Hoover has weathered the economic issues a lot better than many," Smith said.

The city is expects the official closing on the sale Thursday.

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